Enhancements in the regulation of company service providers : a Maltese perspective

Abstract

This paper explores the essential role of company service providers (CSPs) in Malta’s financial sector, particularly regarding regulatory frameworks aimed at combatting money laundering and terrorist financing. It reviews the historical evolution of CSP regulation, focusing on the CSP Act and subsequent reforms designed to enhance compliance and eliminate exemptions. While significant progress has been made, ongoing challenges related to proportionality highlight the need for further refinements to the regulatory framework. The analysis emphasises the importance of balancing effective oversight with the facilitation of legitimate business activities, particularly within the Class B under-threshold CSP segment. Proposed improvements, including a registration and notification system, aim to streamline compliance processes and strengthen risk assessment capabilities. Finally, this paper suggests future research directions, such as comparative studies and the evaluation of current oversight practices, to deepen understanding of CSP regulation.